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Q3 loss of $557k
Q1 - Q3 2021 loss of $2980k
2021-12-22 18:58 ET - News Release
Mr. Peter Espig reports
NICOLA MINING PROVIDES OPERATIONAL UPDATE
Nicola Mining Inc. has provided an operational update, including milling and exploration activities.
The company would like to confirm that its Craigmont mill and tailings facility, which is located near Merritt, B.C., has not been adversely affected by the recent flooding experienced in Southern British Columbia. While the Merritt and Nicola region have experienced devastating floods, the mill site is elevated above the flooded regions and in a different watershed than areas experiencing flooding. Nicola has been co-operating with local authorities and has been in contact with the Merritt municipality and department of highways to provide support to the local community. The mill site has not been adversely affected by recent Southern British Columbia flooding while the mill site has not been directly affected by the flooding, access via Highway 1 and the Coquihalla Highway has been impacted as both routes have experienced landslides and damage. Impaired route access has impacted the transportation of approximately 150 tonnes of gold and silver concentrate, which the company will look to transport to a shipping port, now that the Coquihalla Highway has reopened for commercial transportation.
The company received final payment for the first provisional invoice that was submitted to Ocean Partners U.K. Ltd. on April 30, 2021. Ocean Partners operates in a number of countries, including Canada, Chile, China, Cyprus, Mexico, Mongolia, Netherlands, Peru, Taiwan, Turkey, United Kingdom and the United States, and retains agency representation in Argentina, Australia, Bolivia, Brazil, Chile, Ecuador, India, Japan, South Africa, South Korea. The company maintains a strong global network of relationships and contacts in the base metal mining and smelting sector.
To date, the company and Blue Lagoon Resources Inc., with which it has entered into a mining and milling profit share agreement, have received three provisional payments invoice submitted by the sellers of 90 per cent of the estimated price in respect of each shipment of concentrate, once such estimated price has been calculated in accordance with Clause 7 above against presentation of provisional documents and one final payment based on final weights and assays from a third party independent laboratory according to international standards from Ocean Partners. The company has completed winterization of the mill and is currently preparing for 2022 operations, which includes milling operations, continued work on the Transmountain Expansion project, dust reclamation, and exploration at both Craigmont and Treasure Mountain.
The company also announces that it intends to pay all of the interest owing on the secured convertible debentures issued on Jan. 9, 2020, by the issuance of common shares of the company. The debentures mature on Jan. 9, 2023, and bear interest at a rate of 10 per cent per annum, which interest is payable under the terms of the debentures annually, at the option of the company, in cash or by the issuance of shares. The company intends on paying all of the interest in shares to holders of the debentures to settle the outstanding interest payment obligation for the second year of the term of the debentures. Accordingly, the company intends to issue 388,236 shares at a price of 8.5 cents per share in settlement of interest owing of $33,000.
The debt settlement is subject to TSX Venture Exchange approval. The shares will be subject to a statutory hold period expiring on the date that is four months and one day after the closing of the debt settlement.